Internet Access Device Market To Grow 41.6% In 5 Years.

The worldwide market for Internet Access Devices (personal computers, mobile telephones, Internet set top boxes, and Internet and smart appliances) will grow at an overall annual rate of 41.6% in unit terms between 2000 and 2005, according to Cahners In-Stat/MDR. The high-tech research firm reports that the PC and mobile phone segments currently comprise just over 93% of the industry and will continue to represent the majority throughout the forecast period. While the PC and mobile phone segments will have the greatest unit shipments, smart appliances will have the highest Compound Annual Growth Rate (CAGR) at 100.8%.

“Despite our optimistic forecast for this market, there are still several factors affecting all of its individual segments,” says Cindy Wolf, an analyst with In-Stat/MDR. “In the coming years many of these product segments will face increased competition from each other as device functionality converges.” In-Stat/MDR also reported the following observations:

Though the personal computing device market has taken a beating this year, new products and operating systems will stimulate demand in the coming years.

Consumers are hesitant to switch to Internet-enabled phones due to security fears, price concerns, and the lack of compelling applications.

Internet set top boxes are confronted with challenges in broadband penetration, consumer education, and operator business models.

The Internet appliance market has seen the exit of many players primarily due to price and application issues, but there appear to be opportunities in vertical markets.

The smart appliance market is being hampered by a lack of standards, high prices, and a lack of consumer education on how the products add value.

For more information at http://www.instat.com